Instant Intel: Broadband Only Homes

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1 Instant Intel: Broadband Only Homes

2 What is A Broadband Only Home? Broadband Only homes are defined as a household with at least one operable TV/monitor that receives video exclusively through a broadband internet connection instead of traditional means (over-the-air, wired cable, telco, satellite). Source: Nielsen Definition

3 Nielsen Measurement Of Broadband Only Homes National Measurement At the start of the 13/14 season, Broadband Only Homes (BBO) were added to the Nielsen national sample. Local Measurement BBO homes do not contribute to local estimates but continue to grow in set meter markets. Source: Nielsen Measurement in sample

4 Broadband Only Homes Have Grown Over The Years But Represent Only 6% of Total TV Households Broadband Only Homes UE (OOO) by Year 6,696 2,819 3,553 4, , BBO Homes Source: Nielsen Npower UE; 9/25-10/1/17, 9/26-10/2/16,9/28-10/4/15, 9/29-10/5/14,9/30-10/6/13; Broadband Only: A HH with at least one operable TV/monitor that receives video exclusively through a broadband internet connection instead of traditional means (over the air, wired cable, telco, satellite)

5 Even With The Growth of BBO Homes, 8 Out of 10 TV Households Still Subscribe To A Wired Cable, Satellite or Telco Service Share of Universe Estimates by Distribution 81% Cable + Broadcast Only Broadband Only 13% 6% TV HHs Source: Nielsen Npower UE. 9/25-10/1/17; Cable+= delivery via telco.cable or satellite; Broadband Only: A HH with at least one operable TV/monitor that receives video exclusively through a broadband internet connection instead of a traditional means (over the air, wired cable, telco, satellite) ; Broadcast Only: A mode of television content delivery that does not involve satellite transmission or cables (i.e. a paid service). 10

6 In Fact, Broadband Access is An Additive Service and Not a Replacement Majority Of Homes Also Subscribe to A Cable/Satellite/Telco Service Provider Type With Internet Access, 2017 Households (000) 9,384 6,365 4% Cable Plus & Broadband 17,803 80,057 83% Cable Plus, No Internet/Dial-Up Access Broadcast Only & Broadband Broadcast Only, No Internet/Dial- Up Access Source: Nielsen Total Audience Report, Q2 17, Cable + (Wired Cable, Telco, Satellite);Broadband Only: A HH with at least one operable TV/monitor that receives video exclusively through a broadband internet connection instead of a traditional means (over the air, wired cable, telco, satellite);broadcast Only: A mode of television content delivery that does not involve satellite transmission or cables (i.e. a paid service). 12

7 Looking At Diversity Cable/Satellite/Telco Remains The Prominent Provider Share of Distribution Asian Black 73% 12% 15% Broadband Only Homes Broadcast Only Cable+ 78% 5% 17% Hispanic 6% 21% 73% Source: Nielsen Npower avg scalled installed; 9/25-10/1/17; Cable+= delivery via telco.cable or satellite; Broadband Only: A HH with at least one operable TV/monitor that receives video exclusively through a broadband internet connection instead of a traditional means (over the air, wired cable, telco, satellite) ; 10

8 What Are the Common Characteristics of BBO Homes?

9 Broadband Only Homes Have a Lower Income Than Cable Homes Broadband Only Homes Share of Distribution HHI<$30K HHI$30-75K 29% 40% 72% under $75K 48% 40% 24% 20% BBO Cable+ Source: Nielsen NMI Client meeting 9/18/17; 8/17 data;cable+= delivery via telco.cable or satellite; Broadband Only: A HH with at least one operable TV/monitor that receives video exclusively through a broadband internet connection instead of a traditional means (over the air, wired cable, telco, satellite) ; 10

10 Therefore, It is No Surprise, Cost is The Top Reason For Cancelling Cable / Satellite Service What factors influenced your decision to cut off your cable/satellite service? Price - Too expensive 80% I use an internet streaming service - such as Netflix, Hulu, Amazon Video, etc. 48% I use an antenna to get the basic channels on my TV I like to binge watch an entire season of a TV series through my streaming service Moved/Relocated, and I do not plan to sign up for cable/satellite service again The bulk of my TV viewing was the original series, such as "House of Cards", on streaming services 27% 19% 13% 11% 0% 20% 40% 60% 80% 100% Source: TiVo; Q Video Trends Report 10

11 These Homes Represent a Lifestage When Young Adults Are Just Starting Out and Cannot Afford Cable 73% Audience Comp (% Distribution) BBO Homes Cable+ 50% Broadcast Only 40% 21% 26% 28% 33% 22% 6% < Source: Nielsen Npower audience distribution; avg scalled installed; 9/25-10/1/17; Cable + (Wired Cable, Telco, Satellite);Broadband Only: A HH with at least one operable TV/monitor that receives video exclusively through a broadband internet connection instead of a traditional means (over the air, wired cable, telco, satellite);broadcast Only: A mode of television content delivery that does not involve satellite transmission or cables (i.e. a paid service). Also commonl referred to as over the air

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